In response to the hike in goods and services tax (GST) on online gaming, Kavin Bharti Mittal, CEO, Hike, and owner of Rush Gaming Universe, has decided to downsize the company’s workforce. More than a fifth of the total staff will be rendered jobless.
This 400 per cent increase in GST liability will prove to be very challenging for a significant number of enterprising individuals who had introduced innovations within the gaming space. The All India Gaming Federation (AIGF) can even lead to the closure of many micro, small and medium enterprises (MSMEs) as well as startups in the industry.
Despite the company being in a strong position, the recent 400 per cent surge in GST presents a significant challenge. The decision will impact around 55 employees, including 24 part-time employees.
This downsizing at Hike has occurred shortly after the gaming platform Mobile Premier League (MPL) took a similar step. Recently, MPL laid off nearly half of its India-based team, letting go of approximately 350 employees. This move was aimed at easing the financial strain brought about by the GST hike, which has pushed the tax rate to 28 per cent.
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